Hey sweetie! So I have some bad news...I lost my job due to the virus going around
OH NO SWEETIE!!!
Dad, why does mom look so upset.
What is a contraction?
well sweetie, your mom lost her job at the bakery due to the virus going around. Right now she is going through a contraction.
A contraction is when the economy is on a decline. Which means people will be losing their jobs and the economy will be spending less.
I know this looks bad now but don't worry honey this is all part of the business cycle. I am 100% positive things will begin to get better soon because right now we are in a trough.
Don't worry sweetie you don't need to worry. A trough is a sign that we are approaching the end of a decline in the economy such as the employment rate, sooner or later it will begin to start lowering down which means that jobs will be available.
THE BUSINESS CYCLE
What do you mean "a trough"
Omg! My salary at the salon got cut! I didn't know people would take the virus this serious. Like literally all the people I are loosing their jobs from left to right!!
Babe I have amazing news! I got a new job job and the best part is that is pays better than my other job!
That's great sweetheart! I would also like to announce that I got my salary back!!
I told you that things would get better. It's all part of the business cycle. We had to hit rock bottom before we could continue to the next part which is expansion. This pretty much means that economy is on a incline. The unemployment rate is dropping and GDP is rising.
I think it's good to say that we finally reached the peak
A peak is the part of the business cycle that pretty much means that you are at the top of the economy in a way that the unemployment rates are at a low and the GDP is at an high.